The lithium miners have stormed higher today

The Galaxy Resources Limited (ASX:GXY) share price and the Argosy Minerals Limited (ASX:AGY) share price have stormed higher today…

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Whilst the market as a whole has bounced back strongly today thanks to Wall Street pushing higher, one group of shares in particular have stood out with big gains – the lithium miners.

Here is the state of play in the lithium industry during morning trade:

  • The Argosy Minerals Limited (ASX: AGY) share price is up 20% to 32.5 cents.
  • The Avz Minerals Ltd (ASX: AVZ) share price has climbed almost 17% to 28 cents.
  • The European Lithium Ltd (ASX: EUR) share price is nearly 8% higher at 21 cents.
  • The Galaxy Resources Limited (ASX: GXY) share price is up 11% to $3.20.
  • The Kidman Resources Ltd (ASX: KDR) share price is 9% higher to $1.85.
  • The Lepidico Ltd (ASX: LPD) share price has climbed 12.5% to 5.4 cents.
  • The Lithium Australia NL (ASX: LIT) share price is 12.5% higher at 18 cents.
  • The Mineral Resources Limited (ASX: MIN) share price is up 7% to $18.08.
  • The Orocobre Limited (ASX: ORE) share price has pushed 5.5% higher to $6.65.
  • The Pilbara Minerals Ltd (ASX: PLS) share price is 9% higher to 87 cents.

What happened?

It appears as though investors have flipped the risk-on switch overnight following the recovery in U.S. markets.

As the lithium miners are amongst the most risky shares on the market, they were heavily sold off during trade yesterday. But pleasingly for their shareholders, many of these shares have not only reversed these declines, but pushed even higher.

Should you buy the dip?

Whilst I am a big fan of some of these lithium miners and believe they have bright futures ahead of them, it is important to remember that they are some of the most volatile shares on the market. This makes them prone to strong gains in good times and sharp declines in bad times.

In light of this, I think they are largely unsuitable to the average investor. But for investors with a high tolerance for risk, I think it is hard to look beyond Galaxy Resources due to the strong free cash flow it is generating at its Mt Cattlin site.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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